Group 1: Luxury Goods Industry Overview - The luxury goods industry is experiencing mixed results, with Richemont's strong jewelry performance offsetting overall growth slowdown, while the watch segment saw a significant decline [1] - Singapore has retained its title as the world's most expensive city for luxury goods consumption for three consecutive years, indicating Asia's continued dominance in the luxury market [8] - The global luxury market is facing challenges due to economic uncertainties and geopolitical factors, impacting overall consumption [6] Group 2: Company-Specific Developments - Burberry reported a 6% decline in revenue for Q1 2026, with same-store sales improving from a previous 21% drop to a 1% decline, indicating a recovery in brand desirability [3] - LVMH made a strategic investment in French knitwear brand Molli to enhance its presence in the high-end knitwear market, although the transaction amount was not disclosed [4] - Richemont's watch business experienced a 7% decline in sales, contrasting with a robust 11% growth in its jewelry segment [5] - Anta Sports reported a slowdown in growth momentum in Q2 2025, with overall retail revenue showing low single-digit growth [11] - Marni appointed Meryll Rogge as its new creative director, marking a significant leadership change aimed at revitalizing the brand [12] - Pop Mart anticipates a revenue increase of over 200% in Q2, driven by enhanced brand recognition and product diversification [13] - Meibang's net profit is expected to decline by over 90% in H1 2025, primarily due to increased credit impairment losses [14] - Country Road Group faced significant store closures and a 71.7% drop in profits, reflecting the challenges in the retail market [16] - DFS announced its exit from the Oceania market, closing stores in New Zealand and Australia due to economic pressures and high rental costs [18] Group 3: Market Trends and Insights - The Long江 Business School's report indicates that the art market is experiencing a historical opportunity, with Asian and African art prices growing at a compound annual growth rate of 7.7% [7] - The luxury retail landscape is evolving, with brands like Galeries Lafayette achieving double-digit sales growth through store optimization and enhanced customer experience [10]

Core Viewpoint - The valuation of Shein has become a focal point in the investment community, with significant fluctuations in its estimated worth over recent years, leading to speculation about its upcoming IPO and potential market performance [1][2][5]. Valuation and IPO Journey - Shein's valuation has seen dramatic changes, peaking at $100 billion in April 2022 after its F-round financing, but has since faced downward adjustments, with estimates now around $300 billion to $500 billion as it navigates its IPO plans [2][6]. - The company has shifted its IPO strategy from the U.S. to the UK and now aims for a listing in Hong Kong, with hopes of achieving a valuation of $500 billion [5][6]. - The founder's wealth is closely tied to Shein's valuation, with estimates suggesting that a $500 billion valuation could increase his net worth to approximately 132.7 billion yuan [5]. Market Challenges - Shein faces significant challenges due to changing trade policies in major markets like the U.S. and EU, which have increased import costs and reduced its competitive pricing advantage [6][11]. - The company’s reliance on a fast-response supply chain model is under pressure as it seeks to expand production outside of China, particularly in Vietnam, where supply chain limitations exist [11]. Strategic Shifts - To address these challenges, Shein is focusing on platformization and localization strategies, aiming to transform from a fast-fashion retailer to a comprehensive fashion lifestyle platform [12][13]. - The company plans to enhance its supply chain by adopting a dual model that leverages Chinese design capabilities while producing in North America to mitigate tariff impacts [12][13]. Financial Performance - Shein's projected sales growth for 2024 is 19%, reaching $38 billion, which is below earlier expectations, and its net profit is anticipated to decline by nearly 40% to around $1 billion [6][9]. - The valuation of Shein is likely to be influenced by comparisons with established brands like Nike and Uniqlo, which have higher price-to-earnings ratios, suggesting that Shein's reasonable valuation may be closer to $300 billion [6]. Investment Dynamics - The ongoing IPO process has created a complex landscape of interests among investors, with earlier investors likely to see substantial returns while later-stage investors may face significant losses if the valuation does not meet expectations [9][10]. - The company’s ability to present a compelling growth narrative and address investor concerns will be crucial for its upcoming IPO and overall market reception [12][13].

Core Viewpoint - ZARA HOME is closing its last store in Hangzhou and has already announced the closure of its last store in Changsha, indicating a significant contraction in its operations in China [1][3]. Group 1: Store Closures - ZARA HOME's last store in Hangzhou will close soon due to high rent after the lease expiration [1]. - The Changsha store will cease operations on June 29, 2023, due to "business adjustments" [1]. - ZARA HOME has also closed stores in other cities like Shanghai, Nanjing, and Shenzhen, reducing its presence to just over 10 stores in China [3]. Group 2: Inditex Group's Business Adjustments - Inditex Group, ZARA HOME's parent company, has been closing stores across its brands in China, including Pull&Bear, Bershka, and Stradivarius since 2021 [3]. - ZARA has also seen a significant reduction in its store count in China, with 81 stores closed in the past year [3]. Group 3: Financial Performance - Inditex Group reported a 1.5% year-on-year revenue increase to €8.27 billion and a 0.8% net profit increase to €1.3 billion in Q1 of the 2025 fiscal year, but these figures fell short of analyst expectations, leading to a stock price drop of over 6% [3]. Group 4: Market Competition - ZARA HOME faces intense competition in the Chinese market from brands like Miniso, Muji, and other fast-fashion brands, which may lead to further store closures in the future [5].

Group 1 - Shein is seeking to list in Hong Kong instead of London due to a stalled IPO plan in the UK, as it has not received approval from Chinese regulators [1][3] - The company plans to submit a draft prospectus to the Hong Kong Stock Exchange in the coming weeks and aims to go public within the year [1] - Shein previously shifted its focus to London after withdrawing its IPO plans in the US following a request from the SEC for more disclosures [3] Group 2 - The recent IPO of CATL in Hong Kong raised over $4.5 billion, marking it as the largest global IPO of the year, indicating a potential recovery in the Hong Kong IPO market [3] - Concerns remain regarding Shein's competitiveness due to new restrictions in its major markets, Europe and the US, which could impact its business model of selling low-cost apparel [3] - The US has ended tax exemptions for goods under $800, and the EU plans to impose a fixed fee of €2 on low-value e-commerce packages entering the region [3]

Core Viewpoint - Shein is shifting its IPO plans from London to Hong Kong after facing obstacles in the former market, with intentions to submit its prospectus and complete the listing within the year [1] Group 1: IPO Plans - Shein is preparing to list in Hong Kong following setbacks in its London IPO [1] - The company aims to submit its prospectus and complete the listing by the end of the year [1] Group 2: Valuation Impact - Shein's IPO valuation is expected to be affected by changes in international tariff policies [1] - In February, Shein reduced its target valuation for the London IPO to approximately $50 billion, a decrease of nearly 25% from the $66 billion valuation achieved in a $2 billion private funding round earlier in 2023 [1]